Himachal seeks Rs. 2,700cr damages from Brakel

The Himachal Pradesh government has sought Rs 2,700 crore in damages from Brakel Corporation of the Netherlands for delay in building two hydel projects – Jangi Thopan and Thopan Powari.

The state government sent a show-cause notice, forfeiting a part of Rs 280 crore that was paid as part-payment of upfront premium while bidding for the projects.

The two projects, of 480 MW each, were awarded by the state government to Brakel Corporation NV in December 2006, based on international bidding. The criteria included upfront premium to be paid to the state government. The Brakel bagged the projects quoting Rs 346 crore as the premium.

Reliance ADAG firm Reliance Infrastructure was second in line in the bids. As Brakel failed to deposit part of the upfront premium within the time-frame, Reliance staked claim to the projects and requested the state government to cancel the allotment of both the projects to the Dutch firm and allot them to Reliance.

Meanwhile, Adani Power, which was included as a consortium partner in the project by Brakel, had deposited the Rs. 280 crore premium. Reliance filed a writ petition in the high court of Himachal Pradesh seeking cancellation of allotment of both projects to Brakel.

The HC in 2009 cancelled both the projects and asked the state to allot them as per the old tender or by inviting fresh bids. The state government has decided to invite fresh bids.